Solving Modern & Future ITSM ChallengesIT Manager of Tomorrow
Copenhagen, Denmark
November 2019
Philip HearsumITSM Portfolio Manager
ITIL4 lead architect
ITIL4 MP
AXELOS
Looking to the past to descr ibe the present
Seldon CrisisSimultaneous internal and external existential
threats that can be solved by a single course of
action
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Are IT Organisat ions having a mini -Seldon Cris is?
Internal demand to:
• Increase pace of innovation
• Streamline processes
• Reduce bureaucracy
• Improve ROI
• Improve CSAT
• Reduce downtime
• Improve employee productivity
• Adopt new ways of working
• Adopt new technology
• Be an employer of choice
• …
External pressure to:
• Be more responsive to customers
• Be more innovative
• Quicker time to market
• Create value earlier
• Create “wow factor”
• Provide quality services
• Be more ethical/ socially
acceptable
• Compliant with laws &
regulations
• …
How are IT organisat ions responding?
Increased attention on product
development, new tech, & new
ways of working
Digitalisation & digitisation of
internal systems, enhancing
existing automation
The whole organisat ion can’ t work the same way
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Why are we f ight ing about “one f ramework (or tech) to rule them al l”?
I t ’s l ike the story of the e lephant and the bl ind men
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New ways of working & tech impact our teams
Moving to the
Cloud
Right tech to use
cloud platforms
Different
engineering skills
Rebalancing Opex
vs. Capex
“Right-sizing” IT
Service Management
“Right-sizing”
Project Management
Customer
Product Management
The solut ion is to increase the scope of our understanding
IT Operations Customer Support
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The solut ion is to increase the scope of our understanding
Image found via Google Images
The solut ion is to increase the scope of our understanding
Image found via Google Images
The solut ion is to increase the scope of our understanding
Image found via Google Images
But how do we orient
ourselves in this VUCA
(volatile, uncertain, complex and ambiguous)
world?
The case for “Service Dominant Logic”
Service is the fundamental basis of exchange
The customer is always a co-creator of value
A service-centred view is inherently customer
oriented and relational
An enterprise cannot deliver value, but can only offer
value propositions
Value is uniquely and phenomenologically
determined by the beneficiary
From “Service-dominant logic: continuing the evolution” by Vargo & Lusch, 2007
Concepts expla ined Outcomes vs Value Example.
Someone wants to have a haircut
Their outcome may be
• Just want their hair to look tidier
• Wants to be fashionable
• Wants to be attractive
Organisation outcome• wants to have people come to their salon to have their hair cut, and to return again and again.
• The organisation needs to set up the outputs to provide the ability for Both sets of outcomes to
be realised
• They decide their business model and who their target consumer is.
• An enterprise cannot deliver value, but can only offer value propositions• At this point they have only offered a value proposition, We can offer you this, for this so that…
• No value has been realised by either side
• Then the consumer enters, engages in the consuming the haircut “service”.
• If their outcomes are met they will pay and will come back again.
• Both sets of Outcomes have been realised
• Value is created.
Concepts expla ined Outcomes vs Value Example.
• Think about what your desired outcomes are for this conference.
• Think about what the organisers outcomes are
• Look at the Value proposition that was offered
• Come to our conference
• Find out about……….
• Learn about……
• Engauge with…..
• ……………..
Question
• Have you outcomes been realised?
• Do you think that the organisers outcomes have been realised?
• Has value been co-created
• If no one had attended what value would have been realised?
Let ’s use an example of a banking app
Organizational Resources
Product portfolio
Let ’s use an example of a banking app
Organizational Resources
Product portfolio
Service portfolio
Consumer
Consumer demand
Let ’s use an example of a banking app
Organizational Resources
Product portfolio
Service portfolio
Consumer
Consumer demand
Service Relationship
Co-created
Value
Usage
Value is not
“delivered” here
ITIL 4 ref lects these concepts & hol ist ic v is ion
• IT should talk about co-creation of value, not
delivery of value
• Customers and service providers are interested in
value ...
• But so are regulators, auditors, suppliers,
employees, and others!
• Organisation’s resources are constrained or
encouraged by external agents
• Organisations are both consumers and providers
of services
My hypothesis: The Future of ( IT) Serv ice Management
Successful (IT) Service Management needs to:
• Mediate of conversations between ALL stakeholders
• Broker agreements across the service ecosystem
• Enable (or facilitate) required outcomes
What does a serv ice system look l ike?
What do we do convert
opportunity/ demand into
value?
How do we approach work
and making decisions?
How do we direct, monitor
& evaluate performance?
How do we convert
opportunity/ demand into
value?
How can we do better?
The Service Value Chain
Value Streams in ITIL 4
Scalable Operating Model
Individual
Team
Enterprise
Using Guiding Principles to integ rate di f ferent ways of working
Value is important
for customers … but
what about other
stakeholders?
Work in a similar cadence
as other teams; Let
solutions emerge in
complex environmentsNot just peer-to-
peer collaboration
& visibility!
Don’t over-
engineer solutions
up-front
Key Takeaways to the IT Managers of Tomorrow
• Don’t be dogmatic about using only one framework
• Recognise that different parts of your organisation work in different ways
• IT Service Management is not just about:
• Managing infrastructure
• Developing technology or software products
• Service Desks and customer support
• IT Service Management is also about
• Recognising the elements of complexity in service systems
• Managing the conversion of demand into value (not outputs or even outcomes)
• Mediating and creating agreeable consensus amongst multiple stakeholders
• Emotions, empathy and complexity
Key Takeaways to the IT Managers of TomorrowI s p o ke e a r l i e r a b o u t t h e e x t e r n a l v s i n t e r n a l d e m a n d , s o w h a t d o e s I T I L 4 t r y t o d o t o r e s o l ve s o m e o f t h e s e i s s u e s ?
• Be more responsive to customers • Trust and be trusted
• Commit to higher performance
• Increase pace of innovation• How to prioritise work and manage queues
• Commit to higher performance
• Improve employee productivity• Measurement
• Communication
• Organizational Change Management
• Streamline processes• How to create value streams
• How to prioritise work and manage queues
• Be more ethical/ socially acceptable• The 4 dimensions and the factors that affect them
• Understanding key stakeholders
• Create value earlier• Fast development
• Resilient operations
• One “method to rule them all”• Show how methods fit together
Thank you for your time!